Iran and Syria

Lord Wallace of Saltaire Excerpts

Monday 11th November 2013 Lords Chamber

[Baroness Warsi]

On the Middle East peace process, I have stood at this Dispatch Box on a number of occasions over the past 12 months and have said that this year is in many ways a definitive year for real progress to be made. I am heartened by the incredible amount of personal time and energy that Secretary Kerry has put into moving this forward. I think we all accept that the Middle East peace process is an intrinsic element of resolving the tensions in the region. At this stage, we continue to support the initiative led by Secretary Kerry in any way we can and are asked to. The noble Lord makes an important point on the opposition. Of course, I have read many papers and briefings on the make-up of the opposition. There is the national coalition, the armed section—which I think is called the SNC, although I am trying desperately to think of what that stands for.

[Lord Wallace of Saltaire (LD)]

The Syrian National Council.

[Baroness Warsi]

Thank you. We are aware of a number of groups who have openly distanced themselves from the national coalition and the Syrian National Council—for example, al-Qaeda and affiliated groups. However, we are confident that the national coalition continues to represent a broad perspective of Syrian opinion and that that is the view of the Syrian people. We find that many of the armed groups that operate within Syria are not part of the national coalition or necessarily representative of the Syrian people, but have taken advantage of the situation that has arisen in that country.

Iran: Election

Lord Wallace of Saltaire Excerpts

Monday 17th June 2013 Lords Chamber

[Lord Maginnis of Drumglass]

My Lords—

[Lord Wallace of Saltaire]

It is 10 minutes for a UQ, I am afraid, and we are out of time.

European Union: Recent Developments

Lord Wallace of Saltaire Excerpts

Monday 17th December 2012 Lords Chamber

[Lord Davies of Stamford]

I am afraid I must insist. I am very sorry. I would love to give way to the noble Lord. I believe in debate in that sense, but we cannot do it consistent with having a time limit imposed on us.

[Lord Wallace of Saltaire]

My Lords, if I may read from the Companion:

“A member of the House who is speaking may be interrupted with a brief question for clarification … Lengthy or frequent interventions should not be made, even with the consent of the member speaking”.

That suggests that we should allow the noble Lord to finish his speech.

[Lord Davies of Stamford]

I am grateful. The noble Lord, Lord Pearson, made another classic error in his speech; it was about our bargaining power. He said that a certain amount of our trade—50%, or whatever it is—is with the rest of the EU but that nevertheless we buy more from them than they buy from us, and that therefore we have greater bargaining power. I am afraid that that is a logical fallacy. Bargaining power depends not upon the size of the stake but upon the importance to each party respectively of doing the deal. I hope that the noble Lord recognises this because he would be in terrible trouble in any negotiation he is involved in if he does not.

In other words, what is important is how important the particular deal under negotiation is in relation to the total of a party’s interest. As the noble Lord recognises, we have 50% of our trade with the rest of the EU. That is pretty much a life-or-death stake to have but from the point of view of the rest of the EU, which has 17% of its trade with the United Kingdom, it is much less of a life-or-death stake—so we have much less bargaining power, as they have much less need to do a deal than we have. On that basis, one can be a great deal less sanguine about any such negotiation that might take place than Eurosceptics are inclined to reassure the British public that we might be.

--- Later in debate ---

[Lord Pearson of Rannoch]

Would the noble Lord please not go on asking questions to which he does not want answers because they are too uncomfortable for him? We are happy to be in the United Nations because we could withdraw—

[Lord Wallace of Saltaire]

This is a Second Reading debate. Given the lateness of the hour, we should really have one speech after the other rather than general exchanges. Perhaps the noble Lord who is speaking could bear that in mind.

[Lord Lea of Crondall]

Am I going to get extra time for this?

--- Later in debate ---

[Lord Anderson of Swansea]

With respect, that is not what the Answer says. Certain countries reached a certain deal with the European Union. By contrast, Norway has a very different arrangement and if the noble Lord were to look at the recent report by the professor who gave an audit of the Norwegian relationship with the European Union, he would see that the conclusion is very firmly that it is integration into the European Union without any form of representation.

[Lord Wallace of Saltaire]

My Lords, this speech is just approaching 15 minutes, which is considerably longer even than the opening speech. It is rather late and I would ask the noble Lord to be brief.

[Lord Stoddart of Swindon]

I will just answer the question that was put. Of course I accept what the noble Lord says about Norway. However, that was something for Norway. I am saying that, if you do not want to and do not make an agreement, you do not have to accept every regulation and dictate of the European Union to trade with it. I will finish on that point because I got my 15 minutes.

Middle East: Gaza and Syria

Lord Wallace of Saltaire Excerpts

Tuesday 20th November 2012 Lords Chamber

[Baroness Tonge]

My Lords—

[Lord Wallace of Saltaire]

My Lords, I think that it is now this side’s turn and then perhaps those on the opposite side who are trying to come in might stand up in a queue, so to speak.

[Baroness Morris of Bolton]

My Lords, perhaps I may pick up on a point made by the noble Lord, Lord Triesman, and, in doing so, declare an interest as president of Medical Aid for Palestinians. What is being done to address the critical shortages faced by hospitals in Gaza, where 40% of essential medicines and 60% of medical disposals were already at zero stock before the escalation, because of the blockade?

European Union (Approval of Treaty Amendment Decision) Bill [HL]

Lord Wallace of Saltaire Excerpts

Wednesday 13th June 2012 Lords Chamber

Let us take Moody’s as one example, although there are also Standard & Poor’s and Fitch. Moody’s, an American-based private company, recently made a statement about the United Kingdom and it can take it upon itself to rate not just other companies but sovereign countries too. As a result, the sovereign countries have to pay more for their borrowing. Therefore, the credit rating agencies helped to bring on the crisis. Look at who owns Moody’s and at who might benefit as a result of that speculation— it is Berkshire Hathaway, Capital World Investors, ValueAct Capital, Vanguard Group. The companies which own these credit rating agencies benefit by the decisions and the announcements made to downgrade the country concerned. It is, really, outrageous that this should happen.

[Lord Wallace of Saltaire]

My Lords, I see some puzzled faces around the Chamber and I think that others agree with me that this is rather wide of the amendment under discussion. Perhaps I may remind the noble Lord that we are at the Committee stage when we should address directly the amendments concerned.

[Lord Foulkes of Cumnock]

I have noticed that the noble Lord, Lord Wallace of Saltaire, has been up on his feet regularly in recent days and weeks keeping colleagues in order, so I know that he is not picking on me in any way. I accept that I had moved just a little wide of the amendment.

I was trying to say that if Greece were no longer a member of the eurozone, having been forced out because of all these speculators, the question would arise whether the treaty should go ahead as originally planned. That is the amendment and that is a valid point. People are concerned that countries such as Greece, Ireland and now Spain, which are in difficulties and suffering, might have to leave the eurozone because of the speculation taking place. If those countries were no longer members of the eurozone, why should a treaty which was drawn up at a time when they were members continue on that basis? I beg to move.

European Union (Approval of Treaty Amendment Decision) Bill [HL]

Lord Wallace of Saltaire Excerpts

Wednesday 23rd May 2012 Lords Chamber

[Lord Davies of Stamford]

I am most grateful to the Minister for giving way. He said that it was the intention that the ESM should now enter into force next month. Indeed, we support the urgency of that, as I understand it. Therefore, why are we taking so long to ratify this? If we really support the initiative and recognise its urgency, why cannot we ratify it as soon as Parliament has approved this Bill?

[Lord Wallace of Saltaire]

My Lords, I do not think that it has been the usual practice of this House to interrupt Ministers in the middle of their opening speeches, when they are also winding up and when the interrupter has his chance to take part in the debate afterwards. These are questions that the Minister can answer in his wind-up speech.

[Lord Howell of Guildford]

As I have sought to explain, the ESM treaty is an intergovernmental affair between eurozone members, and they are going ahead with it—and they want to go ahead with it—in July. Nevertheless, the individual eurozone members have said that they would want the comfort of cover via an amendment to the European Union treaties, and we are pressing ahead with that as best we can in our own time. The two things are not ultimately dependent; it is just that the changes that we are proposing give comfort, support, reassurance and legal reassurance to the eurozone members so that they can go ahead. Therefore, those who say, “You are not doing anything to play your part in contributing to orderly developments in the eurozone”, are wrong. We are playing our part in doing so, although there are considerable benefits for the UK in making this move, which I have already outlined.

This brings me back to why this Bill is important. It represents Parliament giving a simple yes or no to amending part of the TFEU that does not actually apply to the UK at all. However, as I have made clear, by giving approval to this decision the UK avoids liability for future eurozone bailouts under the EU budget and gives the eurozone the legal clarity—this may reinforce the point I have just made—that it wants to back the European stability mechanism. We also uphold the commitment made by both the Prime Minister and the Chancellor to help the eurozone to get itself out of a crisis. Whichever way the situation goes, that must be to the advantage of us all.

If we were to refuse to agree the decision, the impact on our trading partners in the eurozone would not be positive, to put it mildly. We are under no illusion that the ESM alone will resolve the eurozone crisis, but, as the Prime Minister said last week, an effective firewall is part of the solution. It is safe to assume that markets would not view favourably any uncertainty about the eurozone’s ability to establish a permanent support mechanism. That is just what would arise if we failed to ratify this decision.

As the Prime Minister, my right honourable friend the Foreign Secretary and the Chancellor have repeatedly made clear, a stable Europe is directly in the UK’s interests. That must be so. We rely on the eurozone states for over 40% of our trade. London is Europe’s international financial centre. Stable progress in the eurozone states is vital to stable progress in the United Kingdom.

Therefore, agreeing to this treaty amendment is in our best interests. As I have said, it means that the UK will not be exposed to any future programmes of financial assistance for the eurozone through the EU budget, specifically the European financial stability mechanism—that will be closed—and it helps our neighbours in the eurozone in their search for financial stability in the currency area. Your Lordships have already agreed that the Prime Minister could sign this treaty amendment, as he has done. I hope that we can now take the necessary steps to allow us to ratify it. I beg to move.

--- Later in debate ---

[Lord Lawson of Blaby]

Yes, I am aware of that. I am also aware that he subsequently changed his mind on that point.

Those who promoted European monetary union were guilty of great arrogance and unbelievable irresponsibility. They were arrogant because the only way to have political union was with the consent of the peoples of Europe. The people of this country, the people of France, where I live nowadays, and the people of most, if not all, of the countries of Europe—Luxembourg may be an exception—do not wish to give up national self-government. They do not want to be part of a full-blown European political union. It is a sad thing but I am afraid that for all its, no doubt, high-minded motives, the European movement has been marked by the most appalling contempt for democracy throughout the years that I can remember. The irresponsibility is that political leaders must have known that if this gamble did not come off and they were not able to achieve the political union, the disaster which we see all around us was bound to ensue. That seems to me to be the most irresponsible thing that political leaders could ever have done.

What now? In my judgment, the least bad course—I say “least bad” rather than best because I accept that it is not good—is the orderly dissolution of the eurozone, which will begin with the departure of Greece in only a matter of time, and it will not be a long time. This dissolution is already happening before our eyes, even if the politicians do not accept it. Holders of euro deposits in Greek banks are taking them out at a rate of knots and they will do so increasingly. After that, I am afraid that the same thing will happen as regards euro deposits in the banks of other countries considered to be likely candidates for withdrawal—whether it be the Spanish or Portuguese banks, or wherever.

I agree that the dissolution of the eurozone will be far from painless. There will be a whole lot more sovereign defaults. We have already had getting on for an 80% write down of Greek government debt. That will be bigger. There will be other sovereign defaults. There will be banks in difficulty.

[Lord Wallace of Saltaire]

My Lords—

[Lord Lawson of Blaby]

I will come to a conclusion soon. There will be banks which may have to be saved. But we have handled something like this before. It may not have been on this scale but it was quite substantial. The first international economic issue I had to grapple with as Chancellor of the Exchequer in the mid-1980s was the Latin American sovereign debt crisis, which had many factors in common with this and the IMF played an important part.

In conclusion, there is a heavy cost in the course that I am suggesting but the EMU is a Doomsday machine. If the question is, “How do we keep it going?”, that beggars belief. We have got to get on with it. I do not believe that this will happen, but if there is a serious move to a political union, we can no longer be part of the European Union. That is not the form of European Union which the people of this country are prepared to accept, or, I believe, one which the politicians will accept. It is a very serious matter. The noble Lord, Lord Owen, referred to this in a very thoughtful contribution in the Queen’s Speech debate. He said that in those circumstances, we would have to leave the European Union, although with a referendum first. I do not believe that we will go to a political union. Therefore, the conclusion is that the European monetary union is doomed and the treaty change we are discussing today is supremely irrelevant.

EU: Recent Developments

Lord Wallace of Saltaire Excerpts

Thursday 16th February 2012 Lords Chamber

[Lord Harrison]

My Lords, in setting up ESMA, the European Securities and Markets Authority, have we not already given away that power in order to frustrate credit default swaps legislation?

[Lord Wallace of Saltaire]

My Lords, I think it would appropriate if we continued with the debate. The Minister has sat down. I will answer some of these questions when it comes to winding up.

--- Later in debate ---

[Lord Wallace of Saltaire]

My Lords, at the end of a seven-hour debate in which a very wide range of points have been made and perspectives have been introduced, it is of course impossible to answer everything that has been raised, so I promise that either I or my noble friend Lord Howell will write to noble Lords to answer the points that I am not able to reach. In some ways, it has also been a debate on the just-published EU Committee report, The Euro Area Crisis. It is unusual to have a debate on a report that is close to publication, and I am sure that the noble Lord, Lord Harrison, is pleased about that. The Government are very pleased with the report and we will of course be responding in due course.

The coalition Government have no doubt that the UK is better off in the EU, not better off out of it. We support a prosperous and competitive Europe and a strong single market. These are good for Britain. It is therefore in Britain’s interests that the eurozone sorts out its current serious problems. We want to see a reformed and strengthened European Union, better able to cope with the new international pattern of powers and influence. We want Europe to succeed not just as an economic force but as a political force—that is, as an association of countries with the political will, the shared values and the voice to make a difference in the world. European countries acting together pack a bigger punch in a changing world. To repeat what my noble friend Lord Howell said in opening this debate, Britain is part of the European Union not by default but by choice. It fundamentally reflects our national interest to be part of the single market on our doorstep and we have no intention of walking away.

The benefits of the single market are hard-wired into the UK economy. Half our trade is with Europe—not surprisingly, as this is our nearest and most open market. This trade has been growing faster than our overall trade without diverting British companies with global ambitions from trading more and more with the big emerging markets. There is an absurd view which I see when I look at some of the Eurosceptic blogs that somehow being in the European Union prevents us trading more with China and Brazil. They do not look at the figures which show that German trade with China and Brazil is four times as large as that of Britain and that currently French trade with China is twice that of Britain. These are not contradictions. The UK therefore continues to play an active role and to lead the way in the European Union, and the Government continue to act decisively to defend our national interests within it, as do other Governments within the European Union.

In October, the eurozone countries set out the package of measures that will be needed in the short term if the euro is to resolve its ongoing problems: Europe’s banks need to be recapitalised properly; the uncertainty in Greece needs to be brought to an end; and the firewall must be big enough to deal with the full scale of the crisis. In the longer run, proper fiscal discipline in the eurozone is essential, and the question at the December European Council was on how this process should be taken forward. My right honourable friend the Prime Minister sought sensible and reasonable safeguards to protect the integrity of the single market, and my noble friend Lord Howell has spelt out what those safeguards were. The eurozone countries and others have since reached an intergovernmental agreement outside the European Union.

With the eurozone at the centre of the crisis, the UK is to some extent unavoidably at one side. Some say that we should have been more active, engaged and critical; others, such as the noble Lords, Lord Newby and Lord Kerr, say that we should not intervene too far—that unsolicited advice only irritates those who have to sort out the mess in which they find themselves. The Prime Minister, the Chancellor and the Foreign Secretary have all made it clear that the UK wants the eurozone to survive and prosper. However, we have also made it clear that the single market must not be threatened or sidelined, and there have been a number of noises from some other Governments who have suggested that they would not be unhappy to see aspects of the single market threatened. Europe needs economic recovery and growth, not the stability and no-growth pact of which the noble Lord, Lord Kerr, spoke. We are continuing to pursue that agenda in Brussels through active bilateral conversations as well as with groups of like-minded countries, with which the Government are fully engaged. We are neither isolated, nor ignored. There are many active exchanges in which all of us are fully engaged.

In a rather underreported speech the other day in Berlin, Chancellor Merkel went out of her way to say:

“Britain is essential and also more pro-European than some other countries. We want to have Great Britain in the European Union. We need Britain, by the way. I want to say this emphatically, because Britain has always given us strong orientation in matters of competitiveness and freedom and in the development of the single European market”.

This Government are actively engaged in close relations with Germany. After all, Germany is now the central power—the central economy—in the single market and therefore we all have to ensure that we are fully engaged with it.

Many noble Lords have quoted Keynes and said that they are already Keynesians. Halfway through the debate, I dashed out to find my copy of The Economic Consequences of the Peace, where on page 14 the young John Maynard Keynes argues against the very harsh reparations being imposed on Germany and that Germany was, after all, the natural centre of the European economy. I quote:

“Round Germany as a central support the rest of the European economic system grouped itself”—

it is talking about the 1890s and the 1910s—

“and on the prosperity and enterprise of Germany the prosperity of the rest of the Continent mainly depended. The increasing pace of Germany gave her neighbors an outlet for their products, in exchange for which the enterprise of the German merchant supplied them with their chief requirements”.

We are back to that position and we need to ensure that we erect the complex political mechanisms and exchanges in which we can ensure that we all manage to return to growth together.

There are tremendous problems in the European political system in which we operate about rhetoric and practice. Part of the problem, including in the past two or three months, has been that what people say is very often different from what they mean. The fiscal pact itself is a good example of that. The noble Lord, Lord Kerr, argues that we should have signed after all because it would not make any difference, to which one has to say that, if it will not make any difference, then it is not worth signing.

There are some very large issues in that respect. Institutional construction has been too frequent an alternative to policy change. The rhetoric on political union is still with us. Years ago when I was a graduate student, I remember Karl Deutsche saying that the concept of political union was immensely attractive to politicians because it means so many different things—indeed contradictory things—to many different people. The French and German Governments often believe contradictory things about what they mean by political union. “The European project” and “ever closer union” are phrases that are very loosely defined. We started with the threat of a financial transactions tax which was thought to be, and puffed up in Paris to be, a threat to the City of London. We are now in the process of discovering that what the French will propose is a stamp tax on share transactions at a much lower rate than the British already have for the City of London. What appeared to be an enormous threat turns out to be a very small step forward and attacks on Anglo-Saxon capitalism from Governments whose banks have been very rash in how far they have overextended themselves in lending to Greece and Portugal.

We need to promote, among other things, a greater interchange among economists, or at least a dialogue among economists. When I taught at the London School of Economics, I used to say to my international relations students that, if they went to lectures in the economics department, they would discover that according to the economics taught in the London School of Economics the German economy should have collapsed about 25 years before. I fear, at present, that if one follows the economics taught in German universities, we are pushing the Greek economy into collapse. We need to learn from each other and begin to understand how interdependent our approaches to financial economics and real market economics need to be. We also need to recognise that passing regulations is not the same as implementing them. Part of what we discovered about Greece was the extent to which it had simply ignored the rules of the single market. The noble Lord, Lord Pearson of Rannoch, said absurdly that the euro alone brought down Greece. What we are now discovering about the extent to which the Greek economy was running, with a structure of expensive restrictive practices and very extensive tax evasion, demonstrates that there was always a very large and deep domestically oriented problem there.

[Lord Pearson of Rannoch]

My Lords, perhaps I may put the question slightly differently. Would the Greek people be suffering as they are today without the project of European integration and its euro?

[Lord Wallace of Saltaire]

My Lords, in the context of a global recession, the Greeks would be facing a very severe run on the drachma and quite possibly also a default. As a number of people have remarked, the Greeks defaulted on a number of occasions over the past 120 years.

People talk also about a common European foreign and defence policy. When I am in Germany, politicians there often tell me they are deeply committed to it—and to a European army. However, they cannot explain the strategy, funding, structure or command structure that it would have. In practice, the United Kingdom contributes a great deal to a European foreign policy and to European co-operation in defence. The UK/France defence relationship continues to move forward very well. We are working with others to cope with the immensely complicated problems of the Syrian crisis. In Libya, we flew missions with our French, Belgian, Danish, Swedish and Italian partners. We have been working in Helmand with Estonian troops embedded in British battalions. When I went some weeks ago to the joint command centre at Northwood, I was briefed by a Latvian naval officer on the anti-piracy patrol. In practice we are very deeply embedded in co-operative defence and foreign policy in Europe.

We will have to work hard to defend liberalism in a recession. I mean liberalism in the broader sense of liberal societies, open markets and international co-operation. The noble Lord, Lord Judd, made a wonderfully liberal and internationalist speech. Nationalism, populism and protectionism thrive when unemployment rises and incomes go down. The noble Lord, Lord Monks, mentioned the problems in Hungary. The Commission is now in active dialogue with the Hungarian Government about the extent to which some of their new laws will fit with EU rules. I was fascinated to hear from my Finnish friends that there is now a sort of Eurosceptic International across the European Union, with Eurosceptics in Britain working with their Danish, Finnish and other colleagues internationally against internationalism, so to speak.

The problem of popular opinion across Europe is very severe. I suggest to the noble Lord, Lord Grenfell, that young people in Europe are often not immensely committed to internationalism. They take what they have for granted and they do not support the distant co-operation of elites through international organisations, which is what the European Union provides. It would be easy for us to give way to similar forces in the United Kingdom, in the belief that leaving the European Union would relieve us of international regulation. The demonisation of Germany is part of the way in which one finds easy answers to very complicated problems.

A number of noble Lords said that the fundamental underlying issue was that of Britain's place in the world. On my blog this morning, I came across references to a speech by Daniel Hannan MEP to the Conservative Political Action Committee in the United States, in which he praised Newt Gingrich and was in turn praised by Fox News. He made all the obvious references to Churchill and the Nazi threat, and suggested that Britain should leave Europe and blindly follow wherever the next American Republican Administration might lead us. Others would like us to become Switzerland with nuclear missiles or Norway without having to pay the very substantial sums that Norway contributes on a “voluntary basis” to the European Union. Our political leadership over the past 25 years, including the previous Labour Government, has failed to make the case for active engagement in Europe.

[Lord Lamont of Lerwick]

The noble Lord is enjoying himself attacking Eurosceptics right, left and centre. Is he going to answer some of the points in the debate? In particular, will he answer the questions asked by the noble Lord, Lord Kakkar, about the working time directive as it affects hospitals? Or will his answer be that it means different things to different people, or that it does not really mean what it says?

[Lord Wallace of Saltaire]

The coalition Government are clear that Europe is our firm base from which we look outwards. France, Germany, the Netherlands and Ireland are our closest neighbours and our natural partners, and with them we work to promote our shared values, economic and political, across the world.

Perhaps I may answer some of the points that have been made. The net British contribution to the EU budget was raised but, according to Treasury figures—which are, as always, entirely reliable—last year it was €7.4 billion and not the €10 billion that the noble Lord, Lord Pearson, suggested.

[Lord Pearson of Rannoch]

I was going on Pink Book figures, which include a number of contributions which we make to the European Union that are outside the ambit of the Treasury. The Pink Book figure of €10.3 billion last year is the correct net figure.

[Lord Wallace of Saltaire]

We will continue to disagree.

The noble Lord, Lord Kakkar, raised the working time directive and asked a number of other questions. We are working to ensure that it retains a secure economy-wide opt-out. We would welcome more flexibility on the areas of on-call time and compensatory rest. On the General Medical Council and the overinterpretation of language testing, I am confident that that is also an issue on which the British Government are actively engaged. I will write to the noble Lord further about that.

[Lord Lea of Crondall]

It is not the case that we have a general opt-out on the working time directive. I do not know what the Minister is referring to.

[Lord Wallace of Saltaire]

As I understand it, there is an individual right to opt-out voluntarily from the working time directive. That is precisely what I was explaining. I am sorry that the noble Lord misheard.

On the clinical trials directive, we are working with the Commission on revising the directive, and the Commission will publish proposals this year.

On other matters, the noble Lord, Lord Willoughby de Broke, suggested that the European Union is forcing regulations on the UK. In terms of climate change, the coalition Government, like the previous Government, are committed to climate change and work through the European Union. It is not Brussels forcing that on the United Kingdom.

In other areas, noble Lords may well be aware that some of what comes back from Brussels—the zoo regulation, for example, and a lot of the animal welfare stuff—has been promoted in Brussels extremely actively by British lobbies and is intended to implement and enforce new rules on other Governments across the European Union. That is the way in which democratic politics takes place to some extent above the national level.

The noble Lord, Lord Monks, talked about rebalancing. There is a good case for rebalancing competences between the European Union and its member states, but this would require the agreement of all 27 member states on the basis of negotiation and agreement. It would not be achieved through a unilateral decision.

The noble Earl, Lord Sandwich, asked a number of questions about the Balkans and Africa. Briefly, we are strongly in favour of Serbia finding its place within the European Union. We all understand the conditions which are required for that. We also support Kosovo coming into the European Union, but it will be a slow process for all the remaining Balkan countries. We have to make sure that they meet the criteria.

On the question of co-operation with China in Africa, the EU and the United Kingdom are working very closely on that. I hope the noble Lord noted Andrew Mitchell’s visit to China, during which he persuaded the Chinese to take part in the conference in Korea on the quality of aid. That is the basis on which we hope to find a closer partnership with the Chinese.

The noble Lord, Lord Newby, raised the issue of procurement. In December 2011, the Commission published new proposals to modernise the procurement rules, and I will write to the noble Lord in more detail on that.

The noble Lord, Lord Lea, asked about the Madagascar cyclone. The European Commission humanitarian office has provided nearly €20 million over the past five years for humanitarian response and disaster risk reduction, including cyclone-related support. Any future UK support is likely to be through multilateral channels, notably the European Union, UNICEF and the International Committee of the Red Cross.

I recognise that I cannot have covered all the points raised, but I will conclude by saying that the European Union as a whole is not in an easy position, as we all recognise. We are caught in a financial crisis that is also partly a fiscal crisis and which has contributed to a wider economic recession. We have to work together to resolve these crises—each member state is hobbled by its own domestic politics and the myths that float through the different national debates. It is not at all easy, facing successive rounds of domestic elections, for Governments and political leaders to rise above immediate interests and provide enlightened European statesmanship. The noises coming out of the French presidential election campaign this week illustrate that well. All of us, in all political parties, need to navigate carefully and reasonably between the pressures of our own domestic opinion and the obstacles created by domestic opinion in other countries. That is the task we all face and must all share.

Motion agreed.

Iran

Lord Wallace of Saltaire Excerpts

Tuesday 24th January 2012 Lords Chamber

[Noble Lords]

My Lords—

[Lord Wallace of Saltaire]

My Lords, the noble Baroness, Lady Afshar, has been trying to get in, and we can then come to the Conservative Benches.

[Baroness Afshar]

I declare an interest as someone who was born in Iran and still works very closely with Iranian academics. My worry is that in Iran views are very divided about nuclear weapons, but the moment there is a threat of sanctions and a threat against Iran, it is likely that even among those who are absolutely opposed—I work with the resistance movement—a great many would back the Government. The fear of Israel is very real, and the idea that there is one law for Israel and one for Iran is absolutely understood by Iranians. The idea that Britain will bring its Army or Navy will be seen as armed defence of Israel. That would undermine any negotiations on the table. It would be very much better if negotiations were conducted perhaps a bit more quietly and with less threat. As an academic, I know that we are suffering enormously because brilliant Iranian students who want to do postgraduate work in this country cannot do so. As someone who came to this country as a student I can tell you that sometimes we turn good.

European Union Bill

Lord Wallace of Saltaire Excerpts

Wednesday 13th July 2011 Lords Chamber

13A: Because the decisions concerned would involve an increase in the competences or powers of the European Union in relation to the United Kingdom and should therefore require approval by referendum as well as by Act.

[Lord Wallace of Saltaire]

My Lords, we now turn to the list of decisions in the existing treaties which were previously subject to the requirement of approval by Act and by referendum under Clause 6 but which for the most part would require approval only by Act as a result of your Lordships’ amendments. As with the previous amendments, the Government listened carefully to the arguments put forward after the amendments were agreed by a vote of 214 to 209 in this House. The other place considered these issues further two days ago after having examined in detail the make-up of Clause 6 during its consideration at the start of this year. It has disagreed with your Lordships’ amendments on the basis of our opposition to these changes and by consensus. In so doing, the shadow Europe Minister, Wayne David, said:

“Of course, Members in the other place are entitled to their views, but we have reservations about the proposal that referendums should be confined to these three subject areas, and it is important to put on the record that my comments set out the Labour party’s position”.—[Official Report, Commons, 11/7/11; col. 75.]

It now falls to your Lordships' House to consider whether to insist on its amendments on the basis of the approval of this clause, twice over, by the other place. I would be particularly interested to learn from noble Lords on the Front Bench opposite whether they will reflect the Labour Party’s position today or continue to adopt a different approach.

In moving the amendments on Report, the noble Lord, Lord Hannay of Chiswick, stated that,

“the long list of potential referendums is excessive and disproportionate”.—[Official Report, 13/6/11; col. 552.]

While I appreciate that there are strongly held views on this issue, I should like briefly to repeat why the Government do not agree with this view. The coalition’s programme for government sets out at the start of the section on Europe that,

“no further powers should be transferred to Brussels without a referendum”.

All the decisions listed in Clause 6 in its previous form would constitute such a transfer, as recognised by the other place in its reason for disagreement. As we have made clear previously, Clause 6 consists of five self-standing decisions of great sensitivity, such as on whether to join the euro or to give up national border controls, and seven sensitive national vetoes using a passerelle and avoiding formal treaty changes.

We are debating this Bill in the context of a wide malaise within the European public across most EU member states and a worrying disconnect between the Brussels institutions and the national publics of the member states. Michel Barnier, European Commissioner for the Internal Market, said in a recent speech in Berlin:

“For 60 years we have been building Europe for its citizens and in their name; but too often we have been doing it without them. A malaise has taken hold and the gap between Europe and its citizens has gradually widened”—

that is to say, not just within the UK but across the EU. The deference on which Europe was built, which was given to managerial élites in Brussels on behalf of its peoples but without their informed understanding and consent, and through which substantial powers were transferred to Brussels, has now disappeared. We have to rebuild public confidence in institutionalised co-operation among European Governments. We have to carry our voters with us, not sweep through complex multilateral commitments over their heads.

Successive Governments in Britain have failed to make the case for positive European engagement over the past 20 years or more. Suspicions of French and German intentions, woven into an anti-European narrative, have been endlessly recycled in much of the British media. Some noble Lords might like to reflect on whether there ever was a Faustian pact with the Murdoch press in its Anglo-Saxon but anti-European stance, whereby it would support British Governments so long as they maintained an opposition to stronger European co-operation and in particular to international regulation of media ownership and competition.

If I may speak as a Liberal Democrat, I am entirely comfortable with the constructive approach that this coalition is taking to relations with our European neighbours, large and small, and its positive engagement with the institutions of the European Union. However, it will take us time to regenerate public confidence and to rebuild public trust. The provisions of the Bill, including those of Clause 6, are there to reassure our sceptical citizens that the British Government will not attempt to slip past them unexplained further transfers of power or competence to institutions which at present, sadly, inspire limited loyalty and widespread mistrust.

The other place has now considered the scope of Clause 6 on two occasions. In both cases the other place has approved that the scope of the referendum requirement should incorporate the 12 decisions. On the second occasion it did so by overwhelming consensus. It now, therefore, falls to your Lordships’ House to consider whether or not to insist on its amendments, but I beg to move that it accepts the view of the other place.

Motion B1

Moved by

--- Later in debate ---

[Lord Triesman]

My Lords, we are taking part in this debate this evening because the House of Commons did not accept Amendment 15. The noble Lord, Lord Empey, made the point that the other place may have been indifferent because relatively few Members were there. I ask him not to make that judgment in general about things that happen at the other end. When most debates are conducted, you see the camera sweep around without many people being there. It is entirely possible that you could regard this as indifference to almost everything, or you could say that it is the nature of the life of this place. I certainly do not think that the House could accept what he commended to us—that we should send no messages that are in any sense disagreeable to people in the other place. Such a supine response from this House to matters on which we feel amendments are needed would surely be exactly the opposite of the role that this House should play, and ample argument for its having no role at all.

What is fundamental at this stage is that this legislation takes us, in several constitutional areas, into waters that are—I candidly submit to the House—unknown. We are being invited to change from a system that is fundamentally parliamentary in the main thrust of its work to a system that is plebiscitary. It will on one reading lead to a significant number of plebiscites—that is entirely possible—or on another to very few, as the noble Lord, Lord Lamont, suggested. That is also entirely possible; I do not know which it will be. What I do know is that it will be fundamentally different from the way in which we have conducted parliamentary debate on key issues over many generations.

There is a fundamental constitutional change in that Parliament will offer the public votes—either frequently or infrequently, depending on which reading one takes—on whether to overturn the decisions that it has taken as a result of major debates and major opportunities to review changes in Europe in both Houses. Inevitably, there will be a fundamental change in how we conduct our relationship with Europe as a whole. That is what is intended. Some people advocate that, while others of us believe that this is a disproportionate way of trying to do that. None the less, these are all fundamental changes.

I suggest to the House that, in sailing into these waters, the reality is that we do not know how it will play out. Least of all do we know in what circumstances it will play out. We do not know which things will provide the most significant changes, although we have reason to believe that the present difficulties in European nation state economies give us ample evidence that they will be the tapestry against which all of this will play out. We do not know how the constitutional matters will play out. I doubt anybody here has the temerity to suggest that they know in which circumstances all these matters will play out either.

I entirely understand the argument that there are some things, even against the background that I have described, that are so important to the people of the United Kingdom that they will insist on having a say on them. It is also true that the Government of the day will be bound, in those circumstances, to try to make judgments of their own about what the interests of the country are at any time. There is no point to a parliamentary democracy where the Government of the day say, on some quite critical issues, “We will not be finally responsible for taking judgments about what the interests of our country are”. That would be a peculiar country to live in and one in which the notion of fundamental democracy had been considerably eroded. Variations by subsequent Governments in subsequent Parliaments, of the kind that are suggested in this amendment, seem just to be prudent as a means of allowing the possibility of dealing with circumstances as they arise in a way that is more flexible—I am not afraid of that word—in all of those circumstances.

I am wholly in agreement with the noble Baroness, Lady Williams, when she says that a significant number of these issues will be judged in general elections. When people look at the questions that must be resolved, they will look at them in general elections. For those who say “Trust in the people”, my trust is at its highest point when they decide which Government they want in a general election. That is a fundamental form of trust. I accept that there will be circumstances in which a referendum would be absolutely right. I hope I have been clear from this side of the House that these include such matters as defence policy, Schengen and the euro. There is a raft of policies where I can see that that would be entirely true. However, I do not believe that, in comparison with a general election and the decisions that are taken, the people of the country—in whom, inevitably, trust must be placed in all such circumstances—believe it is somehow better to replicate “The X Factor” than to deal with real politics in real circumstances. “The X Factor” may be fine as a form of entertainment, but it is hardly a way of dealing with the national interest when it must be dealt with under stress or duress.

I also agreed with the noble Baroness, Lady Williams, when she responded to the noble Lord, Lord Lamont. This is an important point; I hope the House will not mind my repeating it. The noble Lord, Lord Lamont, is right when he says that the case for clauses that limit the life of legislation is far clearer in dealing with emergency legislation. You do not know whether you will need it in the future, and you are not 100 per cent sure that it will meet the intentions for which it was introduced. However, there is also a completely reasonable case for saying that, when we are taking such significant steps into the dark in constitutional terms, there needs to be a way to say, “How do we make sure that we’ve got the balance right in the interests of the country? How can we make sure that we are taking the right decisions in the right way against the right environmental circumstances?”. That is, after all, the function of government.

I cannot stand at this Dispatch Box and claim that I know with certainty where those new balances will lie. It is precisely my point that none of us knows where they will lie. However, this generation of politicians or the next will have to make those judgments. They will come around and they will have to be made. Politicians should be in a position to make them with the greatest confidence and authority that they can. It is critical to our country that they are successful in doing so.

I hope we will accept Amendment 15B. It is a much more limited suggestion than Amendment 15. It seems, in every respect, to grant flexibility without overriding the key provisions of the Bill in any significant way. It commends itself strongly to me on that basis. Most of all, it commends itself on the basis that, if it is true that the cause for dissatisfaction is the belief that Parliament has let too many of its roles and responsibilities go toward Europe and for those reasons fundamental constitutional change is needed—because that is the argument for this kind of fundamental constitutional change—let us be certain as time goes by that we have got it right, that the balances are right and that whatever the causes were we have not backed ourselves into a cul-de-sac or something worse.

[Lord Wallace of Saltaire]

My Lords, I thank the noble Lord—

[Lord Stoddart of Swindon]

My Lords—

[Lord Wallace of Saltaire]

We are now winding up.

[Lord Stoddart of Swindon]

If anyone wishes to challenge me and move that I no longer be heard, let them do so, but I wish to ask a question. If I had been allowed to do so without the very rude interruption of the Whip on the Bench, noble Lords would have saved themselves a lot of time. What I wanted to ask—and I am going to ask it now—is whether, when the amendment states that a future Government “may”, it means “shall”. We often have debates about what “may” and “shall” should mean, and I think it is important that before noble Lords vote, if there is going to be a vote, they know whether they are voting for something that commits the next Government to something or is permissive for the next Government. Now I will sit down and be quiet.

Could I just add that the Whip on the Bench did not intervene on the noble Lord, Lord Maclennan, who widened the debate on this very narrow amendment to the extent of whether we should be in or out? I think I have been extremely badly treated, and I hope that the Whip will apologise.

--- Later in debate ---

[Lord Wallace of Saltaire]

My Lords, I start by thanking the noble Lord, Lord Goodhart, for the careful and conciliatory way in which he moved the amendment, now some time ago. I do not regard this as a wrecking amendment, but I do see it as an amendment that will confuse and complicate the principles behind this Bill, weaken their role and not help to reassure our sceptical citizens.

In answer to the insistent question of the noble Lord, Lord Stoddart, my reading of this amendment, which I am sure is that of the noble Lord, Lord Goodhart, is that it is intended to be a permissive power and not an obligatory power for the Secretary of State, which is why it says “may” and not “shall”.

In its favour, the amendment rejects the passive approach proposed by Amendment 15; that is to say, the amendment in lieu requires the Government to take a positive decision to seek to suspend some of the provisions of the Bill. It is permissive in that respect. A Government taking such a decision would undoubtedly be mindful of the possible reaction of the British people to such a move. It would therefore be open to a greater degree of transparency in terms of the motivation of the Government of the day that the original sunset clause would not, to the same degree. As the noble Lord, Lord Lamont, noted, it allows for the suspension of the requirement for an Act of Parliament before any of the decisions in Clause 6 are taken, depending on the terms in the order. So it risks diluting the increased engagement for Parliament, which is an important part of this Bill. The level to which Parliament and the people would be involved in these important decisions would then be in the hands of Ministers, a principle that runs against the spirit of the Bill.

A number of noble Lords suggested that the Bill was intended only to apply to future Governments. I remind noble Lords that in the next Session of this House, we will consider legislation under the terms of this Bill on Croatian accession and the European stability mechanism, and that the conditions of the Bill will apply to those.

European Union Bill

Lord Wallace of Saltaire Excerpts

Thursday 23rd June 2011 Lords Chamber

[Baroness Williams of Crosby]

My Lords, I, too, add my warm thanks to the Ministers for the extremely gracious and thoughtful way in which they have responded to issues in this House. In particular, I thank the Minister for his willingness to spend some time meeting people personally to discuss their particular problems when he is an extremely busy man with a heavy ministerial list, as indeed is his colleague the noble Lord, Lord Wallace of Saltaire. I do not want to detain the House either, beyond thanking them very much and saying one other word following the noble Lord, Lord Williamson.

There are issues in the amendments that this House has passed which would improve the Bill very considerably. I hope that the Ministers will think quite carefully before trying to oppose them completely, because they would bring about a degree of consensus across the House that would be extremely valuable for our future relations with Europe, about which the Minister has already spoken eloquently. We welcome what he has said about that. I hope that the Government will take away from this at least a willingness to consider whether it might not improve the Bill to accept some of these amendments.

[Lord Wallace of Saltaire]

My Lords, we are on the edge, between being in order or out of order. Perhaps I might repeat my noble friend’s request that the noble Lord, Lord Lea of Crondall, might now care to withdraw his amendment. The noble Lord, Lord Pearson of Rannoch, rightly pointed out that we are edging away from Third Reading and into Bill do now pass. I therefore suggest that we allow my noble friend to move the Motion that the Bill do now pass.

[Lord Lea of Crondall]

I thank the Minister for his reply. I will say for the record that I am taking it from what he has said that we will not have a blinkered or blindfolded ping-pong on the basis of asserting the primacy of the House of Commons. I hope not to be disabused of this but, reflecting on what the noble Baroness, Lady Williams of Crosby, has just said, I hope that these things will be considered very carefully. We are a mature democracy and there is a lot of mature thinking in this House. On that basis, I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Pearson of Rannoch]

I am not sure that that intervention is entirely on target. I thought the noble Lord was going to berate us about the Murdoch press, and I do not think that the two newspapers to which I referred belong in the Murdoch stable. I am quite happy to collaborate with the noble Lord on that if he will collaborate with me on getting the BBC to fulfil its duty to explain to the British people how the European Union works.

I think I got as far as saying that three amendments were carried against this Bill which together emasculate it entirely and deny the British people any chance of a meaningful referendum on our relationship with the failing project of European integration, which they do not like.

The point I now want to make about those amendments is that they were largely proposed by noble Lords in receipt of a forfeitable EU pension, most of them undeclared, and they were all carried by the votes of noble Lords who did not declare their interest. I can but suggest that the Privileges Committee revisits this subject before the Bill returns from the Commons and does the obvious thing.

As the Bill now leaves us, there is one other regret that I would like to record. It is that the Government did not respond to a question about the background to this Bill which I put to them twice. The Government’s excuse, no doubt in their mind when they designed the Bill, may be that the Bill should not have allowed us to discuss the EU’s real defects: its common agricultural and fisheries policies, its wasteful and fraudulent use of vast sums of taxpayers’ money and its entirely undemocratic and secret law-making process which now controls so much of our lives. The question I put was this: given that even our political class is beginning to see that the euro was and is designed for disaster—

[Lord Wallace of Saltaire]

I remind the noble Lord that the Companion states that:

“The third reading of a Bill is normally confined to the formal motion”,

and that interventions should be only in opposition to the Bill itself.

[Lord Pearson of Rannoch]

I think that the noble Lord will find that I have cleared this intervention with the usual channels, and I am sorry if he was not part of it.

I think I was saying that even the political class now realises that the euro has become the disaster—